CH 1: SCOPE AND CHALLENGE OF INTERNATIONAL MARKETING Flashcards
America’s largest exporter to present using trade and I.M to bring peace
Boeing Company
Group of companies, similar to Boeing Company, that promotes global dialogue and peace
Mobile industry
Samsung is from
South Korea
Apple is from
U.S
Huawei is from
China
What mobile companies are market leaders
Samsung (South Korea)
Apple (U.S)
Huawei (China)
4 events to shape I.M
1) growth of WTO/Free trade
2) acceptance of the free market in Latin America, Asia, and Eastern Europe
3) impact of the Internet, phones, and social media on national borders
4) manage resources and the global environment
International Marketing
performance of business activities designed to plan, price, promote, and direct goods/services to consumers in more than one nation for a profit
Difference between domestic marketing to international marketing
Domestic is in one nation
Controllable or Uncontrollable: Competition
U
Controllable or Uncontrollable: Product
C
Controllable or Uncontrollable: Promotion
C
Controllable or Uncontrollable: Politics
U
Controllable or Uncontrollable: Law
U
Controllable or Uncontrollable: Distribution
C
Controllable or Uncontrollable: Research
C
Controllable or Uncontrollable: Consumer behavior
U
Controllable or Uncontrollable: Level of technology
U
Why is I.M task more difficult than domestic?
Must deal with at least 2 uncontrollable uncertainty’s
Uncertainty is
uncontrollable elements of all business environments
What determines the outcome of a marketing enterprise?
Evaluate and adapt to the marketing mix and environmental factors
Self-Reference Criterion (SRC)
Unconcious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.
Ethnocentrism
people’s in one own company, culture, or country know best how to do things
Steps to avoid errors in business decisions
1) Define problems in home-country cultural traits, habits, norms
2) Define problems in a foreign country. Make no value judgments
3) Isolate SRC in the problem
4) Redefine problems without SRC
Globally aware is to
1) Tolerance/willingness to learn about cultural differences
2) Knowledge of culture, history, world market potential, global economic, social, and political trends
Another term for Global Awareness?
cultural intelligence (CQ)
What is crucial for cultural differences in I.M?
Tolerance
Tolerance
understanding cultural differences and accepting/working with others whose behaviors may be different from yours
Faster internalization ability
1) high-tech/market-based resources better equipped to internationalize
2) smaller home markets and larger production capacities favor internationalization
3) firms with key managers network internationally
No direct foreign Marketing
does not actively cultivate customers outside national borders / products may reach foreign markets
Infrequent foreign marketing
sales to foreign markets are made as goods become available, with little or no intention of maintaining continuous market representation
Regular foreign market
permanent productive capacity devoted to production in foreign markets
International Marketing
fully comitted to internationalization
Global Marketing
treat the world as one market
International marketing can be defined as:
a.
the creation of domestic processes that aim to enhance indigenous production and minimize the need for imports.
b.
the performance of business activities to sell a company’s goods and services for a profit in more than one nation.
c.
the exchange of goods and services between companies within the boundaries of a country.
d.
designing of activities to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in a single market.
e.
the implementation of marketing strategies to deal with the domestic economic climate to improve the investments in home markets.
b.
the performance of business activities to sell a company’s goods and services for a profit in more than one nation.
Domestic marketing differs from international marketing as domestic marketing:
Select one:
a.
involves development of strategies to adjust to the cultural differences that exist in the new market.
b.
involves performance of business activities across national borders.
c.
involves the task of adapting and adjusting to the uncontrollable geographic forces of the marketing environment.
d.
fails to consider the political, legal or economic issues of the marketing environment.
e.
involves business activities like pricing, production and distribution, aimed toward a single market.
e.
involves business activities like pricing, production and distribution, aimed toward a single market.
Which of the following would be considered an uncontrollable element in the foreign environment?
a.
Channels of distribution
b.
Domestic economic climate
c.
Promotion
d.
Cultural forces
e.
Research
d.
Cultural forces
Which of the following is a domestic environment uncontrollable that can have a direct effect on the success of a foreign venture?
a.
Cultural forces
b.
Level of technology
c.
Structure of distribution
d.
Economic climate
e.
Geography and Infrastructure
d.
Economic climate
Elements such as the structure of distribution and cultural forces are regarded as _____.
a.
home country variables
b.
foreign environment uncontrollables
c.
foreign environment controllables
d.
domestic environment controllables
e.
domestic environment uncontrollables
b.
foreign environment uncontrollables
Allen’s is a cosmetics company in the UK. When Allen’s ventured into the Chinese market by setting up a manufacturing plant in China, the activists in China rallied against the company claiming that they are exploiting the cheap labor available there. They demanded that the manufacturing plant be closed down. Which of the following foreign environment uncontrollables is posing a challenge to Allen’s in the above scenario?
a.
Level of technology
b.
Political/legal forces
c.
Marketing concepts
d.
Sales measures
e.
Competitive forces
b.
Political/legal forces
Sean Jay’s, a successful retail chain from Spain, failed to establish their market in Germany. The main reasons for their failure were designing their retail outlets in the same way as in Spain and selling their products at low prices. The people in Spain like to purchase products at prices they feel as bargain price, whereas people in Germany often associate low prices with a poor quality product. This shows that Sean Jay’s failed to adapt to which of the following uncontrollable factors?
a.
Technological forces
b.
Foreign policies
c.
Political forces
d.
Cultural influences
e.
Economic forces
d.
Cultural influences
One of Phillipe Ortiz’s difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to the business models that work in the Philippines. These models do not work well in the United States. Which of the following best explains the difficulty Philippe is experiencing?
a.
Globalism
b.
Xenophobia
c.
Self-reference criterion
d.
Racism
e.
Intellectual challenges
c.
Self-reference criterion
_____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries.
a.
Global redlining
b.
Ethnocentrism
c.
Multiculturalism
d.
Xenocentrism
e.
Nativism
b.
Ethnocentrism
At the _____ stage of international marketing involvement, a firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets. In addition to this, the primary focus of operations and production is to service domestic market needs.
a.
global marketing
b.
domestic marketing
c.
internal marketing
d.
regular foreign marketing
e.
no direct foreign marketing
d.
regular foreign marketing
